On 28 March 2024, the United States Department of Commerce’s Bureau of Industry and Security (BIS) published a new resource for companies, financial institutions, freight forwarders, and others to help them identify boycott-related requests that they may receive during the regular course of business.
The resource is a public list of entities that have been identified as having made a boycott-related request in reports received by BIS. The list is posted on the Office of Antiboycott Compliance (OAC) webpage to help US persons comply with the antiboycott regulations outlined in Part 760 of the Export Administration Regulations, 15 CFR Parts 730-774 (EAR).
Assistant Secretary for Export Enforcement Matthew S. Axelrod in a statement released on 28 March stated that the announcement reflects BIS’s enhanced enforcement of the antiboycott regulations, including a focus on not just those receiving, but also those making, boycott requests.
Axelrod said, “By publishing this list, we aim to raise awareness of the sources of past boycott requests, facilitate fulfilment of the antiboycott reporting requirements, and deter foreign parties from imposing – and US parties from acquiescing to – boycott-related requests and conditions.”
According to BIS’s statement, every entity on the list has been, at the time, recently reported to BIS on a boycott request report form, as required by Section 760.5 of the EAR, as having made a boycott-related request in connection with a transaction in the interstate or foreign commerce of the United States.
BIS also stated that the list is not exhaustive and will be updated quarterly and encouraged those who may have been listed in error or would like to discuss the listing, to contact OAC.
Additionally, BIS encouraged US persons to diligently review transaction documents from all sources, especially transaction documents with or involving these listed parties, given that others have identified them as a source of boycott requests. This is to identify possible boycott-related language and to determine whether US persons have a reporting requirement to BIS pursuant to Part 760 of the EAR.
Under the antiboycott provisions outlined in Part 760 of the EAR, US persons are discouraged, and in certain circumstances prohibited, from taking certain actions in furtherance or support of a boycott maintained by a foreign country against a country friendly to the United States (an unsanctioned foreign boycott).
In addition, US persons must report to OAC their receipt of certain boycott-related requests. Reports may be filed electronically or by mail on form BIS-621P for single transactions or on form BIS-6051P for multiple transactions involving boycott requests received in the same calendar quarter.
In the same statement, BIS also highlighted that US persons located in the United States must postmark or electronically date stamp their reports by the last day of the month following the calendar quarter in which the underlying request was received. For those located outside the United States, the postmark or date stamp deadline is the last day of the second month following the calendar quarter in which the request was received. Forms for both electronic transmission and mail submission are accessible from the forms request page.
BIS also stated that under Section 764.8 of the EAR, a voluntary self-disclosure may be submitted if the party believes that it may have violated Parts 760 or Part 762 of the EAR (recordkeeping requirements relating to Part 760).
Further information regarding the application of the antiboycott regulations is available on OAC’s online portal.
Source: BIS
